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6 Min. Read

Why Is My PayPal Money on Hold or Unavailable: 5 Reasons

Why Is My PayPal Money on Hold or Unavailable: 5 Reasons

Have you ever checked your account and wondered, “why is my PayPal money on hold?” There could be a few reasons.

Have you ever had your PayPal funds placed on hold? Even despite a recent sale going through, have you then found out that the funds are temporarily unavailable? It could have been for a variety of reasons, but it’s just a way to increase the quality and authenticity for successful transactions.

There are a few different reasons as to why your PayPal money gets held up or becomes unavailable. The good news is they don’t last forever, and the holds don’t last any longer than 21 days. There are also some things that you can do to help avoid or speed up the process should it happen.

Let’s take a look at some reasons why your PayPal money could be on hold or become unavailable.

Here’s What We’ll Cover:

Why Is Your Money Put On Hold or Unavailable?

How to Avoid or Speed Up the Hold Process

Key Takeaways

Why Is Your Money Put On Hold or Unavailable?

Just because your money gets put on hold or becomes unavailable doesn’t mean you have done anything wrong. And if there is a hold put in place, only you will know if it happens. This is good news because it won’t affect or harm your seller reputation. 

There are different reasons for a hold to get put in place. But, it’s a risk management strategy to make sure there are enough funds available just in case something happens. Here are some of the more common reasons why a hold might get placed.

1. You Haven’t Been Active for a While

If you haven’t sold anything in a while and then your selling pattern becomes active again, your account could get put on hold. This is to help stop suspicious activity and make sure that the transactions are credible. It won’t last forever and it could happen randomly. 

Just make sure you keep a positive selling history and you can build your credibility back up as an established seller.

2. A Recent Transaction Was Considered Unusual

If you all of a sudden start making transactions in a different country or spending with unusual activity, you could have your money put on hold. This is to help protect you against any possibility of fraud. 

For example, if something doesn’t fully match up with your regular spending patterns or payments activity. The hold on the payment status will help make sure that it's actually you making the transaction.

3. There Was an Unusual Change In Your Selling Price

Sometimes people sell all sorts of different things at all sorts of price points. But PayPal will put your account on hold and flag any unusual sales activity. This can include if there’s suddenly a big change in the price of the product or the type of product that you sell.

4. Your Selling History Is Short or You’re New to Selling

It could be high risk if first-time sellers have spotty selling activity or the items are high in value, for example. There could be a hold placed only as a precaution to make sure that the transaction details run smoothly. 

5. You Start Selling Higher-Risk Items

There’s nothing wrong with selling things like tickets, consumer electronics or gift cards. It’s just that those items might get considered riskier. Other things like travel packages, computers or anything that has to do with an event might also get flagged. 

If this happens, funds will only be held for 21 days to make sure everything is legitimate. This will help with customer satisfaction and ensure that everyone gets what they need.

How to Avoid or Speed Up the Hold Process

If your funds are put on hold for some reason, there are a few things that you can do to help speed up the process. There are also a few other things that you can do beforehand to help avoid the possibility of a transaction being flagged. 

Here are a few ways to help avoid or speed up the process.

Communicate with PayPal

Communication goes a long way. If you know of any upcoming sale amounts that are larger than usual, communicate those details with PayPal customer service. This will help avoid any payments getting held. 

It can also include if you have any other distinct changes to your selling patterns. Maybe you have a new kind of marketing strategy that will generate more sales. Or you might have a new item for sale that’s much more expensive than your usual products. Whatever it is, being upfront can leave everyone satisfied.

Keep Your Customers Happy

Staying in contact with your customers throughout the sales process is important. Sometimes a customer might have a question or request a refund. Staying on top of those details can help with the overall customer experience. 

And to keep customer loyalty, you also need to keep your account in good standing. Holds can be common for new sellers and other factors like complaints can also contribute. But keep your account positive and quickly deal with any issues that come up to reduce the possibility of funds getting placed on hold.

Have Documents Ready

Holds can happen for any number of reasons, even if you’re an experienced seller. But having the right documentation in place can speed up the process if it happens. Be prepared should you have to send anything to PayPal to confirm the details of a transaction.

This can include a buyer's receipt, a copy of the item's description or any shipping information to track where it gets sent. If a hold gets placed, it can get lifted by providing this documentation or if the buyer receives their product. 

Key Takeaways

If PayPal puts a hold on your money, one of the best things you can do first is have any documentation ready in case it's needed. This will speed up the process and confirm the legitimacy of the transaction. Contacting PayPay if you’re aware of any upcoming sales that will be larger than usual will also help avoid a hold getting placed on the funds. 

But, in some cases, there’s nothing you can do about funds getting put on hold. It could happen for any of the reasons outlined above, but you now know why it could have happened. And it will only last for a maximum of 21 days. So if you’re doing everything properly and keeping your account in good standing, the chances of a hold happening will be lower. 


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